China made aircraft, a headache for Nepal airlines

Jinen Gada

10 Oct 2022

In November 2012, Nepal Airlines signed a commercial agreement with the Aviation Industry Corporation of China (AVIC), a Chinese government undertaking, to procure six aircraft—two 56-seater MA60s and four 17-seater Y12es.

As part of the deal, China provided grant and concessional loan assistance worth 408 million Chinese yuan to purchase the six aircraft.

Out of the total aid money, a grant worth 180 million yuan went to pay for one MA60 and one Y12e aircraft; and a loan worth 228 million yuan was used to purchase one MA60 and three Y12e aircraft.

In July 2020, the airline's management announced that it would ground all Chinese-made airplanes.

The delivery of the rest of the Chinese aircraft was stalled for years after issues appeared in the first batch of planes that arrived in 2014.

These issues included lack of pilots, lack of instructor pilots, lack of spare parts and lack of engineers trained to maintain them.

Except for operating services to a few airports in the Tarai plains, these aircraft spent more time on the ground than in the air, and they were becoming a financial stress to the debt-ridden national flag carrier.

Besides maintenance issues and lack of spare parts, Nepal Airlines couldn’t find pilots to fly the aircraft, and there was no sense in keeping them anymore.

The Chinese planes have been grounded for more than two years.

The Finance Ministry is the owner of the planes and Nepal Airlines is the operator. The ministry gave the green signal to Nepal Airlines to lease out or sell the planes in March 2021.

All these five turboprops are in storage at Kathmandu airport and are available for inspection on an “as is, where is” basis, according to the notice published by Nepal Airlines on its website.

Only airlines with a valid air operator’s certificate and at least one aircraft in their in-house fleet are eligible to bid.

With inputs from The Nation.

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Italy unveils its first vertiport

Prashant-prabhakar

09 Oct 2022

The first crewed eVTOL test flights in Italian airspace have been accomplished successfully by Aeroporti di Roma (ADR), Atlantia, UrbanV, and one of the pioneers of urban air mobility (UAM)- Volocopter. The Leonardo da Vinci International Airport in Fiumicino, Italy has a mobility ecosystem built up when these experiments were conducted there.

The partners have started operating the first fully operational vertiport in Italy, marking an important step toward the anticipated introduction of advanced air mobility (AAM) services in Rome by 2024.

ALSO READ - Urban air mobility | Advanced air mobility- history, market forecasts and myths debunked

The vertiport at Fiumicino airport

Aeroporti di Roma, Volocopter, UrbanV, and Atlantia carried out the nation's first advanced air mobility (AAM) testing vertiport presentation on October 6 and hosted an interactive booking process on Volocopter's VoloIQ digital platform. The first eVTOL prototype was unveiled in Italy a year before the test.

The first AAM flights between Fiumicino Airport and the city of Rome are scheduled to begin flying by 2024, and substantial advancements have been made in in-flight technology, vertiport design, and the legislation required to make this possible.

Today’s event represents a significant milestone in our path as pioneers in testing and implementing Advanced Air Mobility in Italy, and in playing our part in making urban transports increasingly sustainable and seamless. The opening of the first vertiport in Italy and the first crewed eVTOL flight represent a remarkable step towards the activation of the first AAM routes between Fiumicino airport and Rome city centre by the end of 2024, ahead of the Jubilee, to offer our contribution to our city and our institutions in welcoming the international tourist flows with a ground-breaking, innovative serviceMarco Troncone — CEO of Aeroporti di Roma

After receiving all necessary approvals from the Italian authorities, the civil aviation authority (Ente Nazionale per l'Aviazione Civile - ENAC), and the provider of air traffic control services (Ente Nazionale Assistenza al Volo - ENAV), whose role remains central in defining the future AAM ecosystem, Volocopter's test pilot on board the electric Volocopter 2X flew 40 km/h for 5 minutes at 40 meters height along a "figure 8" flight Volocopter's electric air taxi is made for rapid, emission-free passenger flights over congested roads and waterways in urban settings, representing Atlantia and Aeroporti di Roma's intention to take the lead in advancing aviation's innovative and sustainable future.

The vertiport

After the flight, UrbanV, a firm founded by ADR along with Aéroports de la Côte d'Azur, Aeroporto di Venezia (SAVE), and Aeroporto Guglielmo Marconi di Bologna, presented a vertiport demonstration. International vertiport design and construction have been the goal. The VoloIQ, another aspect of potential AAM services, was looked at in this context.

ALSO READ - Vertiports – the key to UAM/AAM infrastructure | How are they different from heliports?

The urban air mobility ecosystem's backbone, allowing digital access to every working process, is this digital platform. VoloIQ will assist and streamline UAM/AAM operation scale-up in cities all over the world, from flight operations to booking and beyond, to complement the physical infrastructure (vertiports) and the whole ecosystem in the digital sphere.

It is situated within the regulatory sandbox authorized by ENAC and was created by the European Union Aviation Safety Agency's (EASA) "Prototype Technical Specifications for the Design of VFR Vertiports for Operation with Manned VTOL-Capable Aircraft Certified in the Enhanced Category".

Its electric system was built to enable the testing of various eVTOL charging systems, and it is intended to host a variety of tests for both flight and ground operations (turnaround, battery charge, etc). (battery swaps, fast charging, etc.).

https://www.youtube.com/watch?v=N4iTg4az0yc

This test vertiport is particularly significant for UrbanV, representing our first step towards establishing a network of vertiports in the Rome region. In close synergy with all of our partners in this new mobility ecosystem, we are making progress towards positioning Rome as one of the first European cities to offer seamless connections with electric aircraft, leveraging the expertise we have developed in designing and building ground infrastructure for advanced air mobilityCarlo Tursi — CEO of UrbanV

The infrastructure, which covers about 5,500 square meters, has been sized to ensure compatibility with the primary eVTOLs that will be certified in the upcoming years and consists of a parking area, a covered hangar measuring 20 x 20 x 6 meters, and various rooms, including an office, a warehouse, and a space for battery charging. The FATO (Final Approach and Takeoff Area) is used for landing and takeoff operations.

We’ve come from a signed partnership agreement and event series kickoff to a flight test at an operational airport in a little less than a year. With that, we are bringing together all the key stakeholders and regulators to witness this mobility service and technology with their own eyesChristian Bauer — Volocopter’s Chief Commercial Officer and Interim Chief Financial Officer

Recent research by the EASA and the McKinsey Center for Future Mobility has determined that the estimated market size of UAM in Europe - including R&D, vehicle manufacturing, operations, and infrastructure construction - will be about €4.2 billion by that year, with the capacity to create or sustain about 90,000 jobs (excluding manufacturing jobs).

Rome is one of Italy's best cities for the deployment of UAM/AAM services, according to the EASA study, which focuses on the diversity of societal benefits that UAM will have for Europe.

SOURCE: VoloCopter

COVER: VoloCopter

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Headwinds for UDAN scheme in Punjab

Jinen Gada

08 Oct 2022

Ude Desh Ka Aam Naagrik’ (UDAN) scheme of the Central government, which has helped in improving air connectivity to many tier-2 and tier-3 cities across the country with affordable airfares, has just been a non-starter in Punjab.

UDAN scheme was aimed at making domestic flights available for the local population and the price of tickets was capped at the economical rate so that the maximum number of people can travel by air.

The scheme has failed to take off in Ludhiana, Pathankot, Adampur (Jalandhar) and Bathinda airports, while most of these stations, as per aviation experts, have a vast scope for air traffic.

During the checking of records of Civil Aviation, Punjab, it was seen that an amount of ?3.45 crore was paid to Air India as a 20% share of the state on account of VGF.

Of the 5 planned stations across the state, where UDAN was scheduled to kickstart, after its initiation by the Union aviation ministry in 2016, only Amritsar witnessed the implementation of this scheme but air traffic operations at this airport under the scheme are no more operational.

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The Government of India and the Punjab government entered into a Memorandum of Understanding (MoU) for this scheme, and as per the agreement, there was the provision of providing Viability Gap Funding (VGF), which was to be provided by the GOI and Punjab government in the ratio of 80% and 20% respectively.

This VGF was to be provided for 3 years from the date of operation of the flight, on basis of a formula to the selected airlines who had shown the willingness to operate. Due to non-operational flights, Punjab has so far incurred almost INR 4 crore in losses as part of VGF.

Even the audit department has also put objections to this expenditure in the Punjab Aviation Department.

"During the checking of records of Civil Aviation, Punjab, it was seen that an amount of ?3.45 crore was paid to Air India as 20% share of the state on account of VGF. However, it was seen that out of five domestic airports, no flights are operational at any airport at present.VGF was paid for initial three years and flights stopped after the VGF funding. This has resulted in a loss of ?3.45 crore as there is no flight operational under UDAN defeating the very purpose of scheme”.Remarked the audit objection.

The Pathankot and Ludhiana stations have immense scope under the UDAN scheme, but lack of seriousness has proved to be a roadblock, the officials added.

ALSO READ - Punjab to get its very first aviation museum set up in Patiala

(With Inputs from The Hindustan Times)

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Why is Hong Kong offering 500,000 free air tickets? 

Jinen Gada

08 Oct 2022

Hong Kong recently said that it plans to give away 500,000 airfares to global visitors to boost its Covid-hit tourism industry.

Until recently Hong Kong had some of the world's toughest quarantine rules as it followed China's 'zero-Covid' policies. However, last month, the city announced that it would no longer require people arriving to go into hotel quarantine or show a negative Covid test before boarding a flight to Hong Kong.

Hong Kong attracted around 56 million visitors a year before the pandemic, and now the popular destination is taking significant steps to win tourists back after over two years of some of the world’s toughest travel restrictions.

Hong Kong To Offer 500,000 Free Air Tickets To Win Tourists Back.

Two years ago, the Airport Authority of Hong Kong announced plans to give away 500,000 flight tickets, worth around USD 254.8 million, to tourists and residents. This week, the city announced it is ready to put that plan into action.

Back in 2020, the Airport Authority of Hong Kong purchased around 500,000 air tickets in advance from the territory’s home-based airlines as part of a relief package to support the aviation industry.

Hong Kong has been largely cut off from the rest of the world due to its Covid-19 quarantine rules, which at one stage required incoming travellers to spend 21 days in a hotel room at their own expense, with only Hong Kong residents permitted entry.

Although Hong Kong has relaxed its entry rules, visitors, possibly including those who will be given free tickets, are still currently subject to the entry rules.

The Hong Kong Tourism Board is currently working out arrangements with international airlines and more details will be announced once everything has been nailed down.

Incoming international travellers must submit a pre-flight vaccination certificate, alongside a negative PCR test and rapid antigen test, before entering.

Once they've been permitted to enter, visitors are required to undergo a three-day self-monitoring period, during which time they're prohibited from eating in restaurants or visiting bars.

Moreover, visitors also need to complete PCR tests on days two, four and six after arrival, and a rapid antigen test every day for seven days.

Also read - Virgin Atlantic ceases flights to Hong Kong

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Akasa Air commences flights to New Delhi; considering overnight parking options in non-metro airports

Radhika Bansal

08 Oct 2022

Akasa Air, India’s youngest airline, is considering overnight parking options for its fleet in non-metro airports, an airline official said. It is operating five aircraft at present and parks its planes in Mumbai and Bengaluru airports.

Akasa operates 36 daily flights and is expected to increase the count to 44 by the end of October after the induction of one more aircraft. It will induct one plane every 15 days and expects to have a fleet of 20 aircraft by May 2023. The airline has ordered 72 Boeing 737-800 MAX planes, which will be delivered over five years.

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“We are evaluating options to base our aircraft and looking at tier-2, and tier-3 cities, we have announced flights to Guwahati and Agartala. Beyond that, we will explore opportunities to park our aircraft. It does not really matter to us whether it is tier-2, tier-3 or tier-4 cities. If we see potential, we will do what is right for the airline’s economic standpoint.At the rate at which our aircraft are coming in, we need to work on economies of scale. The moment you get 7-8 aircraft you start getting benefits of the economies of scale. The growth story is India and is not restricted to a particular city. It is always important that when an airline starts operations in any part of the world, it keeps long-term interests in mind, especially at the rate we are adding aircraft."Official, Akasa Air

ALSO READ – Akasa Air had a 53% occupancy rate in its first month of operations

The low-cost airline, of which late billionaire investor Rakesh Jhunjhunwala was a promoter, took to the skies on 7 August. it flies to Mumbai, Delhi, Ahmedabad, Bengaluru, Kochi, Chennai, Agartala, and Guwahati.

More and more airlines are looking at non-metro airports to park their fleet overnight as slots at metro airports are expensive and limited, said industry experts.

Akasa Air commences flights to New Delhi; considering overnight parking options in non-metro airports

This is particularly so with respect to metro cities such as Delhi and Mumbai, as parking slots, there are very expensive and also because almost all the slots have been taken.

It is increasingly difficult to get space for night parking, an expert said. However, airlines want to park in metro cities as it leads to revenue generation opportunities as demand for early-morning flights from metro cities is far higher, he said.

Besides, following the coronavirus outbreak, several companies are aiming to open small offices in tier-2 and -3 cities and this is creating a roadmap for sustainable demand from these cities as well, he said.

Akasa Air starts flights from Delhi

Akasa Air on Friday, October 7 started its first commercial flight from Delhi airport to Bengaluru. The flight was scheduled to take off from Delhi at 11:40 AM and reach Bengaluru at 2:25 PM. Akasa which launched its operational flight two months back seen to be progressing well in the domestic flight network.

ALSO READ – Akasa Air set to launch flights from the national capital

https://twitter.com/AkasaAir/status/1578291495659925504

The airline already operates 30 daily flights and with the addition of Delhi now the airline covers multiple major metro cities of India. Akasa Air shared the news via its official Twitter handle showing glimpses of the celebrations at the Delhi Airport as the first Akasa flight from Delhi to Bengaluru takes off.

The brand-new airline in India started operating on August 7 and intends to launch international service by the end of the year. The business recently reached its 60-day operating milestone.

ALSO READ - Akasa Air completes 2 months of flight operations; to allow pets on board

(With Inputs from Mint)

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SpiceJet deposits TDS for all employees for FY 2021-22

Radhika Bansal

08 Oct 2022

SpiceJet, which has been facing turbulent times, has deposited the Tax Deducted at Source (TDS) of all employees for the financial year 2021-22, according to an internal communication. As per the communication, a significant portion of provident fund contributions of all employees is also being credited. Form 16 will be made available in the next fortnight.

ALSO READ – Struggling to-Survive SpiceJet allegedly not depositing PF in employee accounts

ALSO READ - SpiceJet to increase salaries of senior pilots by 20%

In September, the loss-making airline hiked the salaries of its captains and senior first officers by around 20% with effect from October. The government's Emergency Credit Line Guarantee Scheme (ECLGS) is providing some sort of financial relief for the carrier.

ALSO READ - Finance ministry increases credit limit for airlines under ECLGS

The development comes two days after the government enhanced the credit limit for airlines under the ECLGS.

TDS deposited by SpiceJet to all employees for FY 2021-22

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On Thursday, October 6, an airline source said it was expected to receive an additional INR 1,000 crore as part of the modified ECLGS. SpiceJet posted a net loss of INR 789 crore for the June quarter as well as INR 458 crore for the quarter that ended in March 2022. As on June 30, the company’s liabilities were INR 6,772 crore more than its assets. 

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The carrier, whose flights have been restricted to 50% till October 29 by aviation regulator DGCA, last month sent 80 of its cockpit crew on leave without pay for three months.

ALSO READ –DGCA extends the 50% cap on SpiceJet flight operations; keeps it under enhanced surveillance

In September, the loss-making airline hiked the salaries of its captains and senior first officers by around 20% with effect from October.

At that time, the airline said the measure, "which is in line with SpiceJet's policy of not retrenching any employee which the airline steadfastly followed even during the peak of the Covid pandemic, will help rationalise the pilot strength vis- -vis the aircraft fleet".

SpiceJet has been incurring losses for several quarters. The promoter of the company, Ajay Singh, is preparing to sell some of his stake in the company. He holds a total 60 per cent stake in SpiceJet. Earlier, he is looking for a buyer to sell his 24% stake in the company.

ALSO READ – Spicejet looking for a “knight in shining armour” to help with financial distress

Shares of SpiceJet Ltd surged about 9% to INR 42 apiece on the BSE in Thursday, October 6's opening deals after a report said that the Indian budget airline carrier is expected to receive an additional INR 1,000 crore loan under the government's modified Emergency Credit Line Guarantee Scheme (ECLGS) as the airline needs funds to sustain heavy cost burden and pay pending dues.

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